YouTube Creators/Channels in India to be Taxed @ 24%
Bad news for YouTube content creators in India and other parts of the world, Google’s New Tax Policy will enable YouTube to deduct up to 24 percent of youtuber’s total earnings worldwide if they fail to provide their tax information.
Update your Tax Information with Google / YouTube by May 31, or be prepared for up to 24 Percent Tax Deductions of your total earnings worldwide, so in 2021 your YouTube Earnings in India are likely to be affected with this New Tax Policy Update.
YouTube Tax Policy 2021
YouTube is set to start deducting taxes from creators outside of US on the earnings they generate from viewers in the US. The new policy will begin from as early as June 2021, the Google-owned company said in an email to creators. YouTube has also asked creators to submit their tax information in AdSense “to determine the correct amount of taxes to deduct”. The changes apply to all creators outside of the US, including the ones in India. However, there won’t be any similar tax deduction for creators living in the US.
Google will deduct taxes on YouTube earnings from viewers in the US on not just ad views, but this will include YouTube Premium, Super Chat, Super Stickers and channel memberships, according to a support page.
Tax deducted from a YouTube content creator’s earnings will depend upon a few factors. For creators outside of the US, submitting your tax info can get you a withholding rate of 0-30% on earnings that you make from US-based viewers. So if you are a creator with a large segment of your audience or viewers based in the US, be prepared for some revenue cuts from YouTube.
According to the support page,”If you submit US tax info, withholding rates are between 0 percent and 30 percent on earnings that you generate from viewers in the US and depend on whether your country has a tax treaty relationship with the United States.”
Creators based in the US will not be subject to tax withholding if the creators have provided valid tax information. If no US tax information is provided, Google may deduct as per the maximum tax rate, which again will depend on the creator’s AdSense account type and country.
